SouthGobi warns investors of large 2025 loss

Executive Summary

• SouthGobi Resources Ltd. issued a profit warning for the fiscal year ended December 31, 2025, expecting a net loss attributable to equity holders between $151.9 million and $185.6 million USD, a significant reversal from the $92.5 million net profit recorded in 2024.
• The projected loss is primarily driven by decreased average realized selling prices, a shift in product mix toward higher-cost processed coal, and substantial impairment losses on coal stockpiles and cash-generating units.
• The company is currently finalizing its FY2025 financial results, which are scheduled to be officially announced on March 27, 2026.

Key Details

• FY2025 Net Loss Projection: Expected net loss attributable to equity holders is between $151.9 million (U.S.) and $185.6 million (U.S.).
• FY2024 Comparison: The company recorded a net profit attributable to equity holders of approximately $92.5 million (U.S.) for the corresponding period in 2024.
• Primary Drivers of Loss:
  • Decrease in average realized selling price in FY2025 compared to the prior financial year.
  • Change in product mix, specifically selling more processed coal which carries higher production costs.
  • Impairment losses on coal stockpiles of approximately $77.3 million (U.S.).
  • Impairment losses on cash-generating units of approximately $42.0 million (U.S.).
• Financial Status: The unaudited management accounts for FY2025 have not yet been reviewed or audited by the company's auditor and may be subject to adjustments.
• Results Announcement Date: The official results announcement for FY2025 is scheduled to be published on Friday, March 27, 2026.